Dow Set to Extend Record Run as Investors Rotate Out of Tech: Live Market Update

U. S. stock futures were suggesting a mixed open on Wall Street on Friday, as the shift away from high-growth technology names to value-driven sectors persisted, extending a rotation higher in the Dow Jones Industrial Average to a fresh record in the last session.

The Dow futures rose 63 points, or 0.18%, while the futures of the S&P 500 slipped 0.02%. A drop of 65 points in Nasdaq futures, on the other hand, reflected the continued softness in AI-oriented technology stocks.

Tech Stocks Slide; Value Shares Gain

Semiconductor stocks were under renewed stress in premarket trading. Broadcom dropped 6% despite strong Q4 results and an upbeat AI revenue outlook, with the chipmaker expecting its AI sales to double. Shares of AMD and Micron also slipped as the broader AI trade cooled for another session.

Meanwhile, Lululemon surged 10% after announcing CEO Calvin McDonald will step down in January following a challenging year for the company.

As tech faltered, financials, health care and industrials attracted fresh buying. Citigroup, Eli Lilly, and GE Aerospace led the gains, extending Thursday’s move into cyclical and value-oriented sectors. The shift comes just days after the Federal Reserve delivered its third rate cut of 2025, boosting sentiment in rate-sensitive areas.

Dow, S&P 500 Hit Records as Market Broadens Out

On Thursday, the Dow jumped 646 points (1.3%), buoyed by strong performances from Visa, Nike, and UnitedHealth Group. The S&P 500 also closed at an all-time high, while the tech-heavy Nasdaq Composite slipped 0.3% as Alphabet and Nvidia declined.

Market strategists say the trend may mark a significant broadening of the rally.

“If the baton can be passed and the rally can broaden out, we wouldn’t be surprised to see a run into year-end and early next year,”

— Chris Zaccarelli, CIO, Northlight Asset Management

The S&P 500 is up 0.45% this week, and the Dow has gained nearly 1.6%. The Nasdaq is largely flat, while small-cap stocks are outperforming — the Russell 2000 is up 2.7% and hit a new record on Thursday.

Cannabis Stocks Soar on Reports of Federal Reclassification

Cannabis companies jumped sharply after reports that President Donald Trump may move to reclassify marijuana at the federal level — potentially shifting it from a Schedule I to a Schedule III drug, a major step toward broader reform.

• Tilray Brands surged 33% in premarket trading
• Canopy Growth rose 23%
• Innovative Industrial Properties gained 6%
• The Amplify Seymour Cannabis ETF (CNBS) rallied 19%

Premarket Movers: Tilray, Lululemon, RH

Tilray Brands continued climbing — up 28% — following the reclassification reports.

Lululemon spiked 9.4% after announcing its leadership change and beating Wall Street forecasts on revenue and profit.

RH rose 3% after delivering mixed quarterly results and narrowing its Q4 outlook.

Fed Outlook: Labor Market Now the Bigger Concern

Philadelphia Federal Reserve President Anna Paulson signaled Friday that she sees unemployment as a more immediate economic risk than inflation, suggesting further rate cuts remain possible.

Paulson said she expects inflation to continue cooling through 2026 and described current monetary policy as “somewhat restrictive.”

She added that if AI-driven productivity gains prove durable, the Fed may have more flexibility to maintain lower rates without stoking inflation.